HDFC Bank hit a new high of Rs 1,538, up 2.7%, extending Friday’s 2.4% gain on BSE, after the private sector lender reported a better-than-expected net profit for the quarter ended March 2017 (Q4FY17).

In past one-week, HDFC Bank outperformed the market by gaining 7% as compared to a marginal 0.32% rise in the S&P BSE Sensex.

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With the strong rally in stock, the market valuation of HDFC Bank has inches closer to the Rs 4 lakh crore mark.

With the market capitalization (m-cap) of Rs 3,92,954 crore, the HDFC Bank is Rs 7,000 crore or less than 2% away to join Rs 4 lakh crore m-cap club.

Reliance Industries (RIL) is on top of the rank with m-cap of Rs 460,713 crore ahead of Tata Consultancy Services (TCS), which have m-cap of Rs 457,927 crore, the BSE data shows.

“Best-in-class liability franchise, expansion of rural/semi-urban branches and improvement in productivity owing to digital focus will ensure that the bank delivers above-industry earnings growth — 16-18% CAGR over FY17-19E, albeit lower than trend — and sustains superior return ratios (RoAs of 2%). Also, the RBI’s directive on recognition & stress reporting divergence may weigh on the sector as a whole, but the bank seems to be better placed than other corporate banks given its superior retail franchise which will drive outperformance in near to medium term," Edelweiss Securities said in result update, maintain ‘BUY/SO’ with target price of Rs 1,734.